EUR/JPY capped below 121 handle ahead of CPIs

The EUR/JPY cross clings onto recovery gains so far this session, having halted two back-to-back sessions of losses amid a rebound staged by USD/JPY.

EUR/JPY firmer on USD/JPY pullback

The EUR/JPY pair now gains +0.20% to trade at 120.88, unable to chew offers lined up just below 121 handle. The recovery in EUR/JPY fails to garner some support, as gains from a higher USD/JPY is partly offset by the EUR/USD retreat, in wake of broad based US dollar rebound from Trump’s comments-led massive sell-off seen yesterday.

Next of relevance for the cross remains the inflation figures due on the cards from Germany, Eurozone and US, with the US CPI report closely eyed as we head towards the Trump’s inauguration later this week.

EUR/JPY: Technical Levels

Higher side: 121.19 (5-DMA), 121.80 (10 & 50-DMA)

Lower side: 120.29 (daily S1), 119.37 (Nov 30 low)